Real estate company Seritage, created in the summer of 2015 to redevelop part of Sears Holdings' real estate holdings, has announced the carve-up sale of its asset portfolio in advance of its dissolution.
These transactions follow several events: a change in operational management with the appointment of Andrea Olshan and the resignation from the board of major shareholder Eddie Lampert - who owns 29% of the capital. There was also a renegotiation of the terms of the debt with Berkshire Hathaway, the company's main creditor, and a change of status with a conversation from REIT to C-Corp.
In short, once the asset sales are completed and the company is dissolved, Seritage will announce a distribution to shareholders of between $18 and $29 per share, as indicated in the preliminary proxy. This is for a stock that currently trades at $11.
There are no impediments to the deal: the reference shareholder supports it, and is expected to buy some of the assets. The other minority shareholders, probably disappointed with Seritage's underperformance over the past five years, can finally turn the page. Berkshire Hathaway is assured of recovering its loan after pocketing generous coupons: the piecemeal sale of the portfolio of assets avoids a possible financing risk, and there are no legal or juridical obstacles.
No timeframe was given, but it is reasonable to assume that the deal will be completed by the end of the year.